(Yicai) Aug. 18 -- Great Wall Motor has launched production at its factory in Brazil, the Chinese carmaker's first plant in Latin America.

Great Wall's new factory in São Paulo went live on Aug. 16 Beijing Time, Chairman Jack Wey said on Weibo on the same day, adding that the firm plans to launch its Hi4 hybrid four-wheel-drive system in Latin America.

The plant will produce Haval H6 fuel and hybrid sport utility vehicle models, the Haval H9 SUVs, and Poer pickup trucks, with an initial annual capacity of 50,000 units that will eventually reach 100,000 units, according to Great Wall. It has 530 workers, including 145 in administrative or office roles, while the workforce should top 1,000 by the end of this year.

The factory covers 1,875 acres in Iracemápolis and was previously Mercedes-Benz's only passenger car production base in Brazil and one of its three local plants. It began producing the German auto giant's GLA SUV and C-Class sedan in 2016, before ceasing operations in December 2020.

Great Wall agreed to buy the plant from Mercedes-Benz on Aug. 18, 2021. According to sources familiar with the deal, the acquisition was worth around EUR300 million (USD315 million), with the agreement including the transfer of land, buildings, and machinery to the Baoding-based company, but no personnel.

GWM entered Brazil's new energy vehicle market in 2022, unveiling a plan to invest over BRL10 billion (USD1.8 billion) over the next decade to strengthen local supply chains, focusing on electrification and smart car technologies. It then rapidly expanded its local dealer network from one to 88 outlets in less than two years, covering major cities and key regions.

Brazil is South America's largest economy and a top 10 global auto market, with its car sales rising 4.6 percent to 1.13 million units in the first half of this year from a year earlier. Its Chinese vehicle imports climbed 3.6 percent to 134,582 units, accounting for 62 percent of its total, with those of hybrid models surging 29 percent to 103,800 units.

BYD, Chery Automobile, Geely Holding Group, and other Chinese carmakers have also announced plans to expand their Brazilian production and tie-ups.

Editor: Martin Kadiev